One of the following is an environment analysis of “largest Pizza chains” in the US and International. In the following sections, we will assess the environment analysis on “consumer satisfaction” and its re-formulated pizza recipe. Within the re-formulating and the expansion of its menu, we will see how they have been able to recapture some of the market with existing and new customers, with customer satisfaction and excellent delivery. Domino’s Pizza, for example, they have re-formulated their ingredients and added new items to their menu, but like Pizza Hut, Papa John’s, and Little Caesar, we will discuss their strength’s and weakness to be able to survive in the Pizza Industry. Within this report, I will cover the existing/future components of the general environment such as demographics, economics, political/legal, sociocultural, technological culture, and their efforts to remain a competitor in the industry.
Political Legal
From a legal standpoint the in the Food Service Industry, there are certain laws and regulations to be met prior to entering. For example, Domino’s has to meet strict health and insurance requirement’s, such as Business Property, Business Liability, Business Crime, and Worker’s Compensation Insurance to Operate a business. They’re other competitors such as Pizza Hut and Papa John’s that have to purchase these insurance to protect their business. Some of the protection covered by these Insurances are property damage, in case of a fire; Business liability, that protects them from any accident that may occur at the restaurant, or illnesses that the food may cause; Business Crime, covers theft and robbery, and Workman’s Compensation, that represents the interest of injured workers in the workplac...
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...provide the consumer with alternative products they have to be able to shift with the trend in order to keep up. So Domino’s will have to offer healthier alternatives, what products to offer and how fast will they be able and adapt to these changes.
Alternative Strategies
Over the past years, pizza lovers have been looking for alternative since obesity is the highest in the US, and are becoming aware of it, something has to be done. According to World Health Organization, the US leads obesity at 30.6% and Japan at 3.2% that’s a difference of 27.4% that means there is something wrong with our eating habits. As by state Texas is ranked at number 9, this means that by Domino’s taking the initiative and offers healthier choices and using more alternative ingredients to make a pizza, would increase sales by those that are aware that changes need to happen.
External environment analysis plays an important role in shaping the overall industry. It helps keep the business ahead of its competitors and providing opportunities for implementing innovative ideas. Based on demographic, Chipotle focuses majority of its sales on “Millennials”, who are between the ages 18 and 24. “Serving high quality food with reasonable prices” and the ability to customize your meal with a variety of different options in a fast paced environment is something many consumers are attracted to especially the younger generation. Chipotle’s first restaurant was established in Colorado but now they have restaurants all throughout the United States, Canada, United Kingdom, and so much more, located primarily in urban areas.
Demand for Panera franchising opportunities was very high, which allowed Panera to be picky about where and with whom they would do business. Panera determined where bakery-café locations could be. The franchisees bore the cost of opening new locations, and were required to obtain their ingredients from the home company. Expansion using the franchise model provided many upside benefits for Panera, while limiting the downside r...
Dominos has recently changed their pizza ingredient and their pricing structure they could become a major threat to Papa John’s customer base because they have always prided themselves on using high-quality ingredients. Dominos is now making attempting to grab up some Papa John’s domestic market share.
Red Lobster was a chain restaurant founded in 1968 by Bill Darden to bringing affordable, top quality seafood to a broad and mainstream American consumer base. With experienced restaurant operation skills and advanced seafood distribution system, Red Lobster could prepare and serve food quickly and at low cost so mainstream consumers could afford variant top quality seafood. The instant success in 1968 leads to a quick expansion around America. By the end of 2010, Red Lobster has built 694 restaurants in both U.S and Canada and became a dining out routine for millions of Americans. However, with the dramatic decline of seafood cost caused by the rise of aquaculture, the competition from restaurant chains like Chili’s, Applebee’s and Outback is increasing. In 2004, Red Lobster’s store sales and guest experience had slightly declined. New CEO Lopdrup and his marketing team’s consumer survey found most consumers saw Red Lobster as a low end place serving mass-produced, fried frozen food. In response, CEO Lopdrup launched a three phased plan include operational improvements, product reposition and Restaurant remodeling. The plan worked well for Red Lobster. By 2010, the customer satisfaction was up 14 percentage points since 2004 and built large operation capacity potentials. With a new marketing research, Red Lobster’s market team uncovered a new potential consumer segment: Experientials, which are pretty affluent customers with high culinary standards and high expectations on service and atmosphere. However, opportunity comes with risks, some traditional customers had complained about the change of Red Lobster.
The company I chose for the international marketing strategy project is Chipotle. Chipotle is a chain restaurant which has Mexican cuisine items on the menu. The company can be seen as a fast food company, however according to the company, they are using quality and fresh ingredients in meals. Generally, fast food restaurants are not healthy and fresh if we compare fast food restaurants with fine dining restaurants. According to Chipotle; “When Chipotle opened its first restaurant in 1993, the idea was simple: show that food served fast didn't have to be a “fast-food” experience. Using high-quality raw ingredients, classic cooking techniques, and distinctive interior design, we brought features from the realm of fine dining to the world of
Subway is an American fast food restaurant franchise founded by Fred DeLuca and Peter Buck in 1965. Throughout the years, the company has gained substantial amount of growth in franchises and has become one of the largest single-brand restaurant chain in the world. Subway continues to display fierce commitment to provide a wide range of taste, healthier food choices while considering environmental footprint and creating a positive influence in the communities they serve. The objective of this report is to investigate and identify how Subway competes in the market through identifying the main performance objectives and examining the measures implemented within the operation, in order to maintain their desired level of performance. It will explore
As many people are trying to put the blame of obesity on restaurants, others, like myself, have a strong opinion that the restaurants have nothing to do with obesity and the customer has the right to order what they would like. Some supporters believe that government should take action to...
The lack of competitors in the local area allows for George’s Gourmet Pizzeria to be the primary choice for consumers wanting quality Italian food. The market concentration for pizza is a monopolistic competition; there are a large number of buyers and sellers in the market e.g. Pizza Hut, Crust, Dominoes, Eagle Boys Pizza, Jags Ristorante and Joey’s Pizza. George’s Gourmet Pizzeria has differentiated themselves by serving quality food in a homely atmosphere for relatively good prices. The differentiation from other fast food outlets (mainly franchises that sell pizza) by focussing on quality food made with fresh ingredients, makes George’s Gourmet Pizzeria stand out from its competitors and gives a healthier option for consumers wanting Italian food. In comparison to its competitors, George’s Gourmet Pizzeria doesn't have as much advertising as Pizza Hut or Dominoes whose ads are constantly seen on television with flyers appearing in the mail every month.
S – Even after 54 years Domino’s greatest strength has been sticking to its original values, the very ones that have made it a top company since its founding: delivery speed, operational transparency, and responsiveness to customer wants and concerns. Since the beginning Domino’s top focus has been on the customer and his or her experience. By providing a simple, inexpensive, and convenient pizza option, Domino’s has been able to remain a top competitor in its industry. Over the years they have expanded their menu, going beyond the pizza box, to answer desires for additional food options such as pasta, subs, and chicken wings, as well as dessert options. This way they not only attract your everyday pizza eaters, but also can appeal to the lunch crowd as well as families looking to have a full meal equipped with appetizers, a main course, and dessert all for a low-price. Domino’s is able to remain on top due to their heavy presence in the United States as well as internationally. Domino’s also posses the ability to quickly adapt to the changing trends. With the world becoming more and more technology driven, services such as the on-line ordering website, iPhone-app, and pizza tracker, Domino’s has been able to hold its own in the ever changing world, constantly delivering a quality product at top speed.
• Little Caesars operates in more than 20 countries with over 2,500 units Emerging New Internet Capabilities and Applications • 2001 Papa John’s made online ordering possible nationwide • 2007 Papa John’s made text orders were added • 2010/2011 Papa John’s made iPhone and Android launched an online ordering app • 2012 Papa John’s made launched online ordering with an app the Kindle Fire • In 2014 more than 50% of Papa John’s orders were made digitally Product Innovation • The industry is characterized by rapid product innovation but short product life cycles is not a key characteristic o Companies must also stay on their feet with new items or they will be left behind in the rapidly growing industry o For the most part any pizza can be remade with a customized order The only exception would be a new crust This causes pizzas to be long term not short term • Research and Development are very important because the companies must know what their customers not only want, but need Disposable income of the surrounding areas of each location and the economy are both important to know • Yes there are opportunities to overtake key rivals
This region of changing customer needs indicates well for all producers of pizza. Pizzas are no more propriety to the Italians. The food is widely taken by all Malaysian as the West has taken over it. The universality can only further be differentiated by developing original well received recipes of pizza, like what Pizza Hut did to the fusion meals. Nonetheless, the younger generations will be automatically influenced into the pizza eating culture as most cinema shows feature the pizza delivery boy when food scenes are
Another point of reason I would like to argue about is fast-food restaurants are everywhere and it is difficult for one to find any alternatives. I would also like to ask of the consumers to look at it from another view. There are many choices available to consumers each day some can do harm, while othe...
In conclusion, fast food should not be held responsible for the obesity epidemic. Between the numerous other options that are just as unhealthy, the improvements the fast food industry is making, and our body’s adaptations that are backfiring; fast food may be part of the problem, but not the actual cause. And yet the fast food industry gets the blame. And attempts to change this image, like the McLean Deluxe, end in failure; forcing them to rely on subtle changes to their menu items. In the end, however, I doubt fast food could be forced to close by the wholesome food movement, there are too many who rely on fast food for a quick meal.
CHANGING PREFRECE depended vastly on the fast food manus. For example we can mention about SALAD. Now salad was never considered as a part of fast food menu. But with the change of taste and preference, fast food chains like Windy, Taco Bell, and McDonald have introduced SALAD into their menus. This preference is not stopping only with salads. In 2002, McDonald’s introduced great tasting new products including premium salads, n salads plus menu; Chicken McNuggets made with white meat; Fish McDippers; Chicken Selects; and new breakfast offerings like the McGriddle sandwiches. Here as a fast food chain, McDonald did not have to introduce new dishes in their menus but with the impression and image in the market analysis, of increasing demand and chan...
...iance on fast food. However, in this instance, due to the legitimacy of fast food addiction, along with too much advertising, and the shoddy healthy menu alternatives offered, people have been unable to make a change, and continue to head in the wrong direction. As a result, the Government must step in as it has done in the past with tobacco, and regulate the market in order to save people from themselves. By creating a universal standard to measure the healthiness of a food, the government can then decide how much to tax certain menu items, and consequently control their price and demand. Furthermore, the government can decide which items will be declared as healthy choices, and thus which items can be advertised. Once the government takes these measures to mend the problems fast food has created, it can lead everyone to the road of becoming a healthier nation.